Market experts said that investors should analyze how much community is linked to it, before investing in such joke tokens. "Such coins have thin order books which can be easily manipulated by a single big buy or sell order by whales," he said.
Malviya cautioned investors to keep off such meme coins and avoid investing their hard-earned money into them. "It is a function of attention span, more than anything else and the way NFTs kind of get classified or get value to a large degree, human attention span is what kind of gets value, Gaurav Dahake, CEO, Bitbns and Member Blockchain and Crypto Assets Council. They said that value creation happens in the long run and investors should follow a buy-in-dips approach. "Communities have played a key role in the cryptocurrency industry since its inception."Ĭrypto veterans suggest investors to stay away from the euphoria-based token. The only fundamental strength in these meme coins is the strong communities behind these projects, Malviya added. Hence, it reacts to the mercurial figures like Tesla boss, who appeared to be the darlings of the crypto world. The crypto market is still in the nascent stage. In the absence of any social media buzz, such coins find it difficult to survive," he added. "There is hardly any value in such meme coins. There is mostly the fear of missing out for the retail investors that cause further rally, said Edul Patel, CEO and Co-founder, Mudrex. Prior to this, his social media commentary and hints have led to wild swings in Dogecoin and Bitcoin. It is not the first instance when the fire fueled by Musk's tweet has resulted in wild swings in any cryptocurrency. Memes are usually used to kind of convey a certain point or idea. There is hardly any fundamental reason behind the rise of meme coins.īackers of namecoins believe that memes are the currency of the internet, gaining popularity among the younger crowd.
Memecoins are extremely volatile coins within the universe of the already volatile cryptocurrencies. Other less known memecoins such as Husky, SafeMoon Inu, Hokkaidu Inu, Akita Inu, Kishu Inu and Shih Tzu have rallied between 200 and 500 per cent in the last one week. Safemoon Inu has soared over 185 per cent just in the last 24 hours while CateCoin has jumped up to 510 per cent in the last week. Every meme token which has 'Inu' in it has skyrocketed recently. Elon Musk, one of the World’s richest persons, has been an avid supporter of Dogecoin on social media. "Retail investors follow Musk's lead whenever he posts something about dogecoin or any other meme coin," he added.
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